Australia Pacific LNG reported that the company made an additional 7.9 PJ of gas available to the domestic market since May. It includes the finalisation of a 1.2 PJ sale to significant energy retailers to support their retailer of last resort obligation.
According to Australia Pacific LNG, the incremental gas sales were a direct response to tight gas supply conditions in the domestic market, and in addition to Australia Pacific LNG’s medium and long-term contract commitments to local customers.
Australia Pacific LNG Chief Executive Officer Khoa Dao expressed his company’s delight at being able to assist domestic customers, including with additional supply at a time when it was desperately needed.
“We are the largest providers of gas to customers on the east coast, and it was pleasing we could provide further incremental volumes to help the market navigate unprecedented challenges,” Dao said.
He also added that the demand for gas on the east coast sharply increased over May and June. It follows a cold snap, coal power plant outages, coal supply challenges, and lower renewables output due to weather, which resulted in increased reliance on gas-fired generation.
Australia Pacific LNG stated that in the fiscal year 2022, the company provided over 150 PJs of gas to local customers through medium and long-term gas supply agreements at prices locked in well before this year’s market volatility.
The amount of gas material contributes significantly to Australia’s total east coast annual demand, which, according to the Australia Pacific LNG, mirrors their long-standing commitment to the domestic market.
